Ethereum corrects to the downside from the $4,150 resistance zone, but remains holding the $4,000 support. According to NewsBTC’s Aayush Jindal, ETH could start a fresh increase.
Ethereum Retains Mainstream Support
Ethereum attempted an upside break above the $4,150 resistance zone but failed. Then, it is 23% of the upward move from $3,895 to $4,155. There was also a break below the 6 Fib retracement level. The price even settled below the $4,050 level and the 100 hourly simple moving average. However, the bulls managed to stay active near the $4,000 level. Besides, the 50% Fib retracement level of the rise from the $3,895 low to $4,155 high also acted as support. ETH is now rising and trading above the 100 hourly simple moving average.
An immediate upside resistance is near the $4.100 level. There is also a key bearish trend line forming with resistance near $4,100 on the hourly chart of ETH/USD. The next major resistance is near the $4,155 level. 4. A clear upside break above the $155 level could start another major increase in the near term. In the stated case, the price could rise to the $4,250 level. Any further gains could send the price towards the $4,350 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $4.100 level, it could decline further. An initial support on the downside is near the $4,040 level and the 100 hourly SMA. An initial key support is now forming near the $4,000 level. A downside break below the $4,040 and $4,000 levels could put a lot of pressure on the bulls. In the stated case, the price could decline to the $3,920 support zone in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is above the 50 level.
- Main Support Level – $4,000
- Main Resistance Level – $4.155
